csr in india csr background of · pdf filenalco foundation is focused on development of...

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CSR IN INDIA Corporate Social Responsibility is not a new concept in India. However, what is new is the shift in focus from making profits to meeting societal challenges. Giving a universal definition of Corporate Social Responsibility is bit difficult as there is no common definition as such. However, there are few common threads that connect all the perspectives of CSR with each other; the dedication to serve the society being most important of them. Most ideal definition of corporate social responsibility (CSR) has been given by world business council for Sustained Development which says, “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”. CSR BACKGROUND OF NALCO As a policy, NALCO started allocating 0.5% of its net profit every year for Periphery Development (PD) activities, since 1998-99. The amount was doubled to 1% since 2002-03. Out of the total sum: 40% for Damanjodi sector, where the Mines & Refinery are located; 40% for Angul sector, where the Smelter & Power Plant are located; 20% for rest of areas As per the policy of Government of Odisha, the Rehabilitation & Periphery Development Advisory Committees (RPDACs), at Koraput and Angul, headed by concerned Revenue Divisional Commissioners (RDCs), with local MLAs, MPs, Collectors and others as Members, decide all policy and project matters related to periphery development in areas of Angul and Damanjodi. The amount was revised to 2% w.e.f. 2010-11 1 % through RPDAC 1% through Nalco Foundation Since 2014-15, NALCO is allocating 2% of the average net profit of the immediately 3 preceding financial years, as per provisions of Companies Act 2013 NALCO FOUNDATION In 2010-11 fiscal, NALCO Board decided to set up a standalone Foundation for its CSR activities. Among other things, the Board decided to allocate an additional one percent of Nalco’s total net profit every year to fund the schemes to be undertaken by this Foundation. With the setting up of NALCO Foundation, the CSR budget of the company now stands doubled at 2% of the net profit.

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Page 1: CSR IN INDIA CSR BACKGROUND OF · PDF fileNalco Foundation is focused on development of villages located within 15 kms radius of ... • Post training, each participant was provided

CSR IN INDIA Corporate Social Responsibility is not a new concept in India. However, what is new is the shift in focus from making profits to meeting societal challenges. Giving a universal definition of Corporate Social Responsibility is bit difficult as there is no common definition as such. However, there are few common threads that connect all the perspectives of CSR with each other; the dedication to serve the society being most important of them. Most ideal definition of corporate social responsibility (CSR) has been given by world business council for Sustained Development which says, “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”.

CSR BACKGROUND OF NALCO As a policy, NALCO started allocating 0.5% of its net profit every year for Periphery Development (PD) activities, since 1998-99.

The amount was doubled to 1% since 2002-03. Out of the total sum:

• 40% for Damanjodi sector, where the Mines & Refinery are located;

• 40% for Angul sector, where the Smelter & Power Plant are located;

• 20% for rest of areas

As per the policy of Government of Odisha, the Rehabilitation & Periphery Development Advisory Committees (RPDACs), at Koraput and Angul, headed by concerned Revenue Divisional Commissioners (RDCs), with local MLAs, MPs, Collectors and others as Members, decide all policy and project matters related to periphery development in areas of Angul and Damanjodi.

The amount was revised to 2% w.e.f. 2010-11

1 % through RPDAC

1% through Nalco Foundation

Since 2014-15, NALCO is allocating 2% of the average net profit of the immediately 3 preceding financial years, as per provisions of Companies Act 2013

NALCO FOUNDATION In 2010-11 fiscal, NALCO Board decided to set up a standalone Foundation for its CSR activities. Among other things, the Board decided to allocate an additional one percent of Nalco’s total net profit every year to fund the schemes to be undertaken by this Foundation. With the setting up of NALCO Foundation, the CSR budget of the company now stands doubled at 2% of the net profit.

Page 2: CSR IN INDIA CSR BACKGROUND OF · PDF fileNalco Foundation is focused on development of villages located within 15 kms radius of ... • Post training, each participant was provided

The Foundation was registered on 28th July 2010, under the Indian Trust Act 1882.

The Foundation is based on the Guidelines on CSR for CPSEs, issued in March 2010 by the Department of Public Enterprises, Government of India.

As directed therein, since NALCO’s net profit is more than Rs.500 crore, its CSR expenditure range should be: 0.5% to 2% of the net profit.

NALCO has opted for the maximum by setting up the NALCO Foundation.

VISION: To be an agent to engineer holistic development MISSION To work with communities in the vicinity of NALCO projects as partners for sustainable

development; To take up sustainable development projects to support education, health, drinking

water and basic amenities along with income generation programmes; To empower women to find a rightful place in Nation building; To empower children, differently-abled

persons (including physically and mentally challenged), old and destitute persons for a dignified living;

To promote art, culture, heritage and

sports, with emphasis on tribal art and culture, in the vicinity of Nalco projects;

To promote environmental

conservation measures. THE BOARD OF TRUSTEES

Chairman

Dr. T.K. Chand,

Chairman-cum-Managing Director, NALCO

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Trustees Shri S.C. Padhy Sri K.C.Samal Director (HR), NALCO Director (F), NALCO Shri S.B.Mishra (IAS Retd.) Dr. R.C.Panda (IAS Retd.) Ex-Chief Secretary, Govt. of Odisha Ex-Secretary, Ministry of Heavy Ind. & Public Enterprises, GOI MANPOWER Five senior officers of NALCO have been assigned the additional responsibilities of NALCO Foundation:

1. Chief Coordinating Officer : Shri Sanjay Kumar Mishra, GM (H&A) 2. Treasurer : Shri Antaryami Acharya, GM (Finance) 3. Chief Operating Officer : Shri Santosh Kumar Behera, AGM (CSR) 4. Secretary : Shri Nayan Kumar Mohanty, Addl. Company Secretary 5. Deputy Treasurer : Shri K.C.Panda, Manager (Finance)

AREA OF OPERATION Nalco Foundation is focused on development of villages located within 15 kms radius of NALCO’s Mines & Plants in Damanjodi and Angul, and also proposed mining areas such as Utkal-ECoal Block (Chhendipada Block, Angul), Pottangi (Koraput) and Gudem & KR Konda (Visakhapatnam & East Godavari districts of Andhra Pradesh). BROAD METHODOLOGY: Nalco Foundation ensures community participation, accountability, sustainability and measurable results, through:

• Baseline surveys& needs assessment • Identification of projects • Selection of implementing agencies • Monitoring and evaluation • Social auditing by independent bodies • Documentation of experience

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STATUS OF PROJECTS

Completed Projects As part of rapport building exercise, Nalco Foundation took up many entry-level activities in focus areas. Subsequently, these are being followed by bigger projects. DAMANJODI

1. Providing drinking water facility through dug-well at Chaugaon: For provision of drinking water Nalco foundation has installed a dug well at Chaugaon village which comes under the immediate periphery..

2. Providing drinking water facility at Putraghati through hand pumps: Three hand pumps have been installed at Putraghati. Out of these, two have been installed at Ari-Putraghati and one at Kandha-Putraghati.

3. Livelihood Training at Khagodara Livelihood oriented trainings were imparted to about 15 beneficiaries each for poultry farming, mushroom cultivation and vermicomposting.

4. Distribution of Sports Kits and Educational Kits in 18 periphery villages In 18 periphery villages, educational kits comprising school bags and library books have been distributed. Sports kits comprising cricket gear, football, volleyball, carom boards and many other things have been distributed to the village committees and schools.

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5. Promotion of solar energy in rural households by distributing 2130 solar

lanterns Electricity is an essential need for any society to live, grow and prosper. The absence of electricity in the villages is worst felt when along with the setting sun the villages too plunge into complete darkness. With an aim to bring light to thousands of rural dwellers, Nalco Foundation has provided high quality solar lanterns to each of the 2130 households. Being light, portable and easily rechargeable, these lanterns are a source of delight for many users, when darkness falls.

6. Creating Malaria awareness and distributing 4260 Mosquito Nets

The wide prevalence of malaria in the villages is a major health hazard for the inhabitants. Nalco Foundation has tried to address this health issue by distribution of 2 family size insecticide-treated mosquito nets to each of the 2130 households in the villages.

7. Propagation of safe drinking water by distributing 2130 water filters

With a view to counter the menace of water borne diseases like diarrhoea, cholera and jaundice, Nalco Foundation has propagated the need for safe drinking water by distributing water filters in 2130 rural households of 18 periphery villages.

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8. Remedial Schools for drop-out Children in five villages (Damanjodi)

Nalco Foundation was operating remedial schools in 5 peripheral villages of its Mines & Refinery Complex viz. Lacchamani, Bhitargarh, Kapsiput, Bhitarmarchmal and Badanerka. The schools catered to 224 dropout children, with the purpose of re-inducting them into formal education system. The children are provided with necessary study materials and school uniforms, besides free meals once a day.

9. Economic development through goat rearing in Bhitargarh and

Kapsiput (Damanjodi)

The Goat Rearing project has been completed in Bhitargarh and Kapsiput villages. 46 numbers of poor and landless families have been identified from these two villages (23 numbers of families from each village). Each beneficiary has been provided with two numbers of goats, and veterinary support. 10. Installation of Playground items in 5 periphery schools: In 5 periphery schools M&R complex those are Chaugaon Sewashram, Mathalput nodal UP School, Litiguda High School, Charada Sewashram, & Kakiriguma Sewashram playground items has been installed. These schools were selected by a physical survey of the schools on the basis of criteria like student strength and boundary wall.

11. Distribution of Sapling in periphery villages of M&R Complex: 14353 nos. of fruit saplings has distributed in 22 periphery villages among 1996 households with an purpose for creating a green environment in the periphery of Mines & Refinery complex.

12. Installation of Solar Street Light: 30 nos. of solar street lights has been installed in 2 villages of immediate mines periphery Ariputraghati & Karidiguda. The project was implemented by Odisha Renewable Energy Development Agency (OREDA), Govt. of Odisha.

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13. Fulfillment of basic infrastructural gaps of School for the Deaf at Sunabeda, Koraput:

Nalco Foundation has taken up the task of plugging infrastructural gaps in special schools operating in Koraput. One such school is School for the Deaf established in 1986 at Sunabeda. The school is deficient in many basic areas for which Nalco Foundation has provided furniture and specially designed learning systems for deaf children, computers, sports items, and creation of additional infrastructure for the inmates. This intervention of Nalco Foundation has benefited more than 80 inmates of the school.

ANGUL 14. Health Check-up

Area: Gopinathpur (Nandichhod) village

• Health check-up of children, mothers and expectant mothers.

• Hemoglobin test for women. • Free medicines, school uniforms

and water filters distributed to pre-school centre of the village.

15. Appliances for Physically-challenged Identification Camp: Gopinathpur (Nandichhod) village

The representatives of Artificial Limbs Manufacturing Corporation of India (ALIMCO) and Vocational Rehabilitation Centre for Handicapped (VRC), both Govt of India agencies, participated in the camp.

• 69 persons of four villages (Nandichhod, Gopinathpur, Korada and Kosala) of Utkal-E Coal Block Area attended the camp.

• 19 physically-challenged people were identified for free appliances. Appliance Distribution Camp at Korada village: 19 identified beneficiaries from Korada, Kosala, Nandichhod and Gopinathpur villages were handed over seven tricycles, two roletors, nine hearing aids and one blind stick. Subsequently, Nalco Foundation helped four beneficiaries to get Disability certificate from Chief District Medical Officer, Government of Odisha.

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16. Backyard Poultry Training

Area: Gopinathpur (Nandichhod) village

• Training programmes were held with the

support of Odisha State Poultry Products Co-operative Marketing Federation Limited (OPOLFED).

• 80 participants (23 male and 57 female)

attended the programmes.

• Post training, each participant was provided 20 chicks, free mesh cage, vaccines, chick feed, medicines and veterinary support.

POTTANGI 17. Village Information Centres (VICs)

Area: Nuagaon, Badapadu, Medhamgandhi,

Galigabadar & Kartalmaudi villages

Five VICs have been set up, with the initiatives of Nalco Foundation. Forms related Govt. programmes like BPL card, old age/widow/ disability pension schemes, MGNREGA job card, Chief Minister’s Relief Fund, Antyodaya Anna Yojana, Janani Suraksha Yojana etc are available here. All help extended through these centres.

Self Help Groups (SHGs) Area: Nuagaon Gram Panchayat

Facilitated by Nalco Foundation ten SHGs have been started, ensuring bank

linkages, seed money, loans and grants, besides access to various schemes.

18. Kanyashram Renovation Area: Nuagaon The renovation of Kanyashram, a residential school set up by ITDA for 110 girls from 7 nearby villages, have been completed by Nalco Foundation ensuring better living condition.

Before After

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19. Renovation of existing community water structures at Badapadu village VISAKHAPATNAM 20. Provision of drinking water through community-managed Gravity Fed

Water Supply Systems in 7 villages of Gudem Kotha Veedhi Mandal Community-managed Gravity Fed Water Supply Systems constructed in 7 villages and adjoining hamlets of GK Veedhi mandal of Visakhapatnam district. The beneficiaries contributed 20% of the total project cost in the form of ‘shramdaan’ under which about12 kilometres of trenches were dug for laying of pipelines.

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Continuous Projects

21. Mobile Health Units in Damanjodi

Nalco Foundation has taken over the operation of the existing Mobile Health Unit (MHU) for the periphery villages of Damanjodi, from October 2011.

Nalco Foundation has also started four MHUs, with the help of Wockhardt Foundation, Mumbai, for free primary health check-up of villagers at their door step. 1,27,923 numbers of patients were treated at Damanjodi during financial year 2014-15.

22. Sponsoring formal education of children living in periphery villages of (Damanjodi)

655 children were enlisted from 18 villages for residential education till Class X at Kalinga Institute of Social Sciences (KISS), Bhubaneswar (for tribal children only), Koraput Development Foundation (KDF) School, Jeypore and Bikash Vidyalaya, Koraput. The number of students admitted in KISS, KDF and Bikash Vidyalaya are 314, 248 and 93 respectively.

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Special Project 23. Swachh Bharat Aviyan As a PSU-partner in Govt’s Swachh Vidyalaya Abhiyan, NALCO was asked by Ministry of HRD, Govt of India, to construct 354 toilets in 202 schools, in Angul and Koraput districts of Odisha and Visakhapatnam district of Andhra Pradesh. NALCO could successfully complete the task within the stipulated time. The project was implemented through NALCO Foundation, the CSR arm of the company.

Most of the schools allotted were located in remote and Maoist-infested areas of Odisha and Andhra Pradesh. Since, some of the

schools did not have any approach roads, pre-fabricated toilets were carried on head loads, crossing rivulets and hillocks. Due to space constraints, designs had to be modified for some of the schools. Besides, summer vacation, monsoon menace, acute shortage of skilled workers & labourers, resolving local issues and theft of construction materials also took their toll.

Despite such heavy odds, NALCO not only achieved the targets in time but also constructed 79 additional toilets, beyond the MHRD target, as per ground realities and requests from school authorities. Therefore, the total number of toilets constructed by NALCO beyond the MHRD target stands at 433.

Projects in Progress 24. Funding Rs. 4.08 Cr for setting up an ITI at Marichamal (Damanjodi) An Industrial Training Institute (ITI) is being set up at Marichamal in the tribal-dominated Damanjodi area to impart vocational training to the rural youth to increase their employability. In this regard, Nalco Foundation has agreed to contribute Rs 4.08 crore to district administration towards infrastructural support to this ITI . Rs. 2 crore has been already released by Nalco Foundation as an advance to expedite setting up of the proposed ITI. 25. Construction of black top road from IAPL Square Bentapur & from Kanyabeda to

Kurdol. The road Kaniabeda to Kurdol is in a very dilapidated condition causing frequent accidents. Therefore Nalco Foundation intervenes for construction of this road, people of periphery villages will be benefitted immensely. Length of road is 3.9 km.

26. Road connecting Karnapur level crossing to Bharatpur Common Point in Karnapur village.

This project was a long standing requirement of periphery villagers. The construction of this road will not only improve the road connectivity to Nalco’s periphery villages like Bentapur, Gadarkhai, Kulad etc. with NH-55, but also improve the outside perimeter/security road of Nalco. Length of road is 1.8 km.

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27. Construction and repair of water channel from Bada Bandha to Syphone adjacent to CPP railway tracks at Gobara village.

The construction of water channel will allow smooth flow of water and check soil erosion beside the channel. It will also help the farmers for irrigation. This will facilitate lean slurry projects work. This will benefit the 4000 thousand population of Gobara village. Other Approved Projects (Damanjodi)

1. Fulfillment of basic infrastructural gaps of ‘MANAS’: School for the Mentally Retarded’ at

Koraput. 2. Installation of Dug well based drinking water facility and renovation of AWC in Nuaput

Village. 3. Community-managed remedial schools in Lachhamani, Rangapani and Talamiting

villages of Damanjodi periphery. 4. Model Village Project in Kapsiput, Khagodara and Upper Gadti villages of Damanjodi

periphery. 5. Fulfillment of basic infrastructural gaps of school for the Deaf at Sunabeda, Koraput. 6. Construction of spring-based drinking water system at Bhitarbhejaput, dug wells at

Kandhaputaghati and Bhitarbhejaput, installation of bore wells in 18 villages. 7. Construction of natural stream based drinking water system at Khagodara. 8. Construction of check dam and repair of canal at Karidiguda. 9. Installation of bore well and construction of toilets in Ex-Proj UP School at Mathalput

Other Approved Projects (Angul)

1. Secondary Eye Care Center 2. Provision of Generator in Red Cross Blood Bank, Talcher. 3. Assistance to Adruta Children home Panchamahalla, Angul. 4. Renovation of Kandasar Katabandha. 5. Repairing of damaged road and culvert in the village Gobara 6. Construction of drain in village Karnapur. 7. Construction of school toilets of village Karnapur. 8. Repairing of damaged road in the village Kukudanga lead to MGR level crossing. 9. Construction of 2 ramps on either side of Railway track to facilitate movement of

farmers, bullock carts etc. at KM 13.30 in Badajorada village. 10. Connecting the existing outlet of box culvert at KM 12.775 to the Deogadia pond in

Badajorada village 11. Completion of first floor classroom in Gobara High School at Gobara village. 12. Renovation of Kiakata pond at Karnapur village. 13. Protection cum Development of Karnapur School Play Ground at Karnapur village. 14. Repair of out let drain from Karnapur pond with raising wall at Karnapur village. 15. Construction of retaining wall & drain development on the southern side of Badajorada

pond at Badajorada village. 16. Renovation of Raulkata and Sukhua Gadia pond at village Girang 17. Renovation of Bada Bandha at village Kulad. 18. Renovation of pond at Kulad and Girang villages of Angul. 19. Construction of BT road for Bentapur, Kanyabeda and Kukudang villages of Angul.

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- In recognition of its CSR initiatives, NALCO received the PSE Excellence Award 2011, in

the Maharatna and Navratna category, instituted by the Department of Public Enterprises (DPE), Govt. of India and Indian Chamber of Commerce on 19.09.2011

- Think Odisha Leadership award for the Education Initiatives in Tribal Belt of Koraput, in a function organized by the Times of India group and Tefla’s on 25.08.2012

- NALCO bagged the IPE CSR Corporate Governance Award on 24.11.2012 - NALCO received the ‘Caring Company Award’ at World CSR Congress, on 18.02.2013 - NALCO received the OTV Award for CSR under the category of ‘Primary Education’, on

09.10.2015 - NALCO received outstanding CSR practices in Community Development by Odisha CSR

Summit 2016